THE CANADIAN TARIFF.

Press, Volume LXVI, Issue 20039, 22 September 1930, Page 12

THE CANADIAN TARIFF.

INCREASE IN BUTTER DUTY. OPINION OP HON. G. W. FORBES. (c:;iTED PRESS Afe'SOCIATIOX—BY ELECTEIO TELEGRAPH—COPYEIGOT.; NEW YORK. September 19. The Australian Press Association interviewed the Hon. G. W. Forbes (Prime Minister of New Zealand) and asked him for a review of the results of the Canadian trip. "Naturally, the wind was taken out of our sails when, on arriving in Canada, wo learned of the large increase in the butter duty," ho said. 'We had planned to discuss with the Canadian Government trade matters or mutual interest, and had a plan in mind for increasing trade between the two Dominions The increases in the butter duty were an unexpected factor. Our discussions with the Canadian Prime Minister and the Minister for Trade in Ottawa oould only be brief. The Government was busy with its tariff measure and the business of the House. It was therefore decided to continue our discussions in London."

Mr Forbes seemed personally optimistic and declared that a solution would undoubtedly be reached before the Imperial Conference adjourned. He said that he realised that the Cana-dian-New Zealand situation was only one aspect of the entire Empire trade problem, which he was confident would be considerably advanced toward a solution by the Imperial Conference. He said that thfru was a realisation in Canada that there were instruments of redress available against any attempt to make trade relationship between the two Dominions too onesided. "The Prime Minister informed us," said Mr Forbes, "that increases in the butter duty were necessary for the encouragement and protection of Canadian dairy farmers. I felt that we understood, however, that the balance of trade had considerably favoured Canada and that jt was impossible that an equitable interchange of commodities cannot long continue when the balance of trade favours one Party to the serious disadvantage of " the other."

Ashed what was being done concerning the film tax. Mr Forbes said that the film interests here had made no engagements to discuss the matter with kim. He hoped that if London arrangements permitted, he would return to New Zealand, via the United States and would visit Washington.

INCREASE MAY CAUSE HARDSHIP

(Receive:} September 21st, 5.5 p.m.)

NEW YORK, September 20.

"The increase in the butter duty announced by Canada will cause somehard feelings among the dairy farmers of New Zealand, and possibly somo hardship," the Prime Minister of New Zealand, Mr G. W. Forbes, said on arrival here from Ottawa, before sailnig for London by the Majestic.

LIBERAL AMENDMENT DEFEATED.

OTTAWA, September 19.

The Government carried a motion to go into committee of Ways and Means on the tariff proposals by a majority of 34. The Liberal amendment was defeated by 40, and a Progressive subameitdineat defeated by 170 SYDNEY SHARE MARKET HEAVY FALL IN VALUES OF STOCKS. • No one who has watched the downward drift in the market can help being perturbed by the heavy fall in the values of front-rank investment stocks that formerly were regarded as almost beyond the reach of ill-fortune (writes "Mentor" in the "Sydney Mail," of the, 10th mst). Leading banks, insurance, industrials, department stores, shipping—all have suffered, and in some cases the loss, of capital incurred by those compelled to sell has been very heavy. Take Dank of New South Wales, for instance. A friend of mine who on the sale of a station property early lust year had several thousand pounds to invest bought, among other btocks. 100 Bank of New South Wales at an average cost to him of £sl in July, U">29. Compelled by force of circumstances to realise a portion of his share holdings last week, he sold his ''Wales" shares for £35, thereby losing £I6OO on the deal. Of course, he paid too much for them in the first instance; but even so he bought at the then ruling market price before there was any hint of a reduction in the bank's dividend, and he certainly erred in good company. As he somewhat ruefully remarked, he could have spent the £I6OO in amusing himself and still have been as well off to-day. So much for wisdom after the event. The lesson has been a sharp one, and until the memory of the present debacle fades we are not likely to see investment stocks pushed so high that the first breath of adversity sends them toppling As a matter of fact, the bulk of the buying before the decline set in wa3 on account of genuine investors seeking outlets for their funds, as distinct from speculators buying for a rise; and the subsequent decline has in many cases wiped out the savings of patient years of self-denial. Industrials Suffer. One of the features,of the present ■ituation is the fall in the shares of highly-protected companies, some of • hem enjoying virtual monopolies. Far from being immune, as many of their supporters fondly imagined, from the 'slings and arrows," they have suffered severely in the market quotations of their shares, even when the former rate of dividend has been maintained. Colonial Sugar, for example, vhich twelve months ago were worth £57 10s, were offered last week at £3l 10s, with buyers prepared to pay no more than €3O. Special circumstances, no doubt, have contributed towards bringing about this heavy decline, which is due in part to the fear that the terms of the sugar agreement may be modified to the disadvantage of the company British Tobacco, another favourite investment stock which until a few weeks ago held firmly around 40s, have come down with a run. and at the time of writing are worth only 30s 9d Unless the country is coming to utter Krief. with no hope of recovery. Sugars and Tobaccos are going begging at bargain prices, end the same mav be said for Australian Glass (2©V») Peters (19s 6d). Tooth (235). and the shares of several other companies that are.sound enough financially to see the depression through.